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Assignment 6

The document outlines a Dividend Discount Model (DDM) based on a constant growth assumption, starting with a current dividend of $3.73 and a growth rate of 10%. It projects anticipated dividends for the next 375 years, with the share value initially calculated at approximately $74.55. The cost of equity is set at 15%, and the model illustrates significant growth in dividends over time, reaching over $8 trillion by year 375.

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Indrajeet Patil
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0% found this document useful (0 votes)
3 views

Assignment 6

The document outlines a Dividend Discount Model (DDM) based on a constant growth assumption, starting with a current dividend of $3.73 and a growth rate of 10%. It projects anticipated dividends for the next 375 years, with the share value initially calculated at approximately $74.55. The cost of equity is set at 15%, and the model illustrates significant growth in dividends over time, reaching over $8 trillion by year 375.

Uploaded by

Indrajeet Patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Dividend Discount M

Year 0 (Current) Dividend 3.73 Assumtion As per constant growth model


Growth rate of dividends 10% Assumtion Share Value 74.54546
Cost of equity 15% Assumtion
Share Value $71.33 Till 60 Years

Year Anticipated Dividend


1 4
2 4.40
3 4.84
4 5.32
5 5.86
6 6.44
7 7.09
8 7.79
9 8.57
10 9.43
11 10.37
12 11.41
13 12.55
14 13.81
15 15.19
16 16.71
17 18.38
18 20.22
19 22.24
20 24.46
21 26.91
22 29.60
23 32.56
24 35.82
25 39.40
26 43.34
27 47.67
28 52.44
29 57.68
30 63.45
31 69.80
32 76.78
33 84.46
34 92.90
35 102.19
36 112.41
37 123.65
38 136.02
39 149.62
40 164.58
41 181.04
42 199.14
43 219.05
44 240.96
45 265.06
46 291.56
47 320.72
48 352.79
49 388.07
50 426.88
51 469.56
52 516.52
53 568.17
54 624.99
55 687.49
56 756.24
57 831.86
58 915.05
59 1006.55
60 1107.21
61 1217.93
62 1339.72
63 1473.69
64 1621.06
65 1783.17
66 1961.48
67 2157.63
68 2373.39
69 2610.73
70 2871.81
71 3158.99
72 3474.89
73 3822.38
74 4204.61
75 4625.07
76 5087.58
77 5596.34
78 6155.97
79 6771.57
80 7448.73
81 8193.60
82 9012.96
83 9914.26
84 10905.68
85 11996.25
86 13195.88
87 14515.46
88 15967.01
89 17563.71
90 19320.08
91 21252.09
92 23377.30
93 25715.03
94 28286.53
95 31115.19
96 34226.70
97 37649.37
98 41414.31
99 45555.74
100 50111.32
101 55122.45
102 60634.69
103 66698.16
104 73367.98
105 80704.78
106 88775.26
107 97652.78
108 107418.06
109 118159.87
110 129975.85
111 142973.44
112 157270.78
113 172997.86
114 190297.65
115 209327.41
116 230260.15
117 253286.17
118 278614.78
119 306476.26
120 337123.89
121 370836.28
122 407919.90
123 448711.89
124 493583.08
125 542941.39
126 597235.53
127 656959.08
128 722654.99
129 794920.49
130 874412.54
131 961853.79
132 1058039.17
133 1163843.09
134 1280227.40
135 1408250.14
136 1549075.15
137 1703982.67
138 1874380.93
139 2061819.03
140 2268000.93
141 2494801.02
142 2744281.13
143 3018709.24
144 3320580.16
145 3652638.18
146 4017902.00
147 4419692.20
148 4861661.41
149 5347827.56
150 5882610.31
151 6470871.34
152 7117958.48
153 7829754.33
154 8612729.76
155 9474002.73
156 10421403.01
157 11463543.31
158 12609897.64
159 13870887.40
160 15257976.14
161 16783773.76
162 18462151.13
163 20308366.25
164 22339202.87
165 24573123.16
166 27030435.47
167 29733479.02
168 32706826.92
169 35977509.61
170 39575260.58
171 43532786.63
172 47886065.30
173 52674671.83
174 57942139.01
175 63736352.91
176 70109988.20
177 77120987.02
178 84833085.72
179 93316394.29
180 102648033.72
181 112912837.10
182 124204120.81
183 136624532.89
184 150286986.17
185 165315684.79
186 181847253.27
187 200031978.60
188 220035176.46
189 242038694.10
190 266242563.51
191 292866819.87
192 322153501.85
193 354368852.04
194 389805737.24
195 428786310.97
196 471664942.06
197 518831436.27
198 570714579.90
199 627786037.89
200 690564641.67
201 759621105.84
202 835583216.43
203 919141538.07
204 1011055691.88
205 1112161261.06
206 1223377387.17
207 1345715125.89
208 1480286638.47
209 1628315302.32
210 1791146832.55
211 1970261515.81
212 2167287667.39
213 2384016434.13
214 2622418077.54
215 2884659885.30
216 3173125873.83
217 3490438461.21
218 3839482307.33
219 4223430538.06
220 4645773591.87
221 5110350951.06
222 5621386046.16
223 6183524650.78
224 6801877115.86
225 7482064827.44
226 8230271310.19
227 9053298441.21
228 9958628285.33
229 10954491113.86
230 12049940225.25
231 13254934247.77
232 14580427672.55
233 16038470439.80
234 17642317483.78
235 19406549232.16
236 21347204155.38
237 23481924570.92
238 25830117028.01
239 28413128730.81
240 31254441603.89
241 34379885764.28
242 37817874340.70
243 41599661774.78
244 45759627952.25
245 50335590747.48
246 55369149822.23
247 60906064804.45
248 66996671284.89
249 73696338413.38
250 81065972254.72
251 89172569480.19
252 98089826428.21
253 107898809071.03
254 118688689978.14
255 130557558975.95
256 143613314873.55
257 157974646360.90
258 173772110996.99
259 191149322096.69
260 210264254306.36
261 231290679737.00
262 254419747710.70
263 279861722481.76
264 307847894729.94
265 338632684202.94
266 372495952623.23
267 409745547885.55
268 450720102674.11
269 495792112941.52
270 545371324235.67
271 599908456659.24
272 659899302325.16
273 725889232557.68
274 798478155813.44
275 878325971394.79
276 966158568534.27
277 1062774425387.69
278 1169051867926.46
279 1285957054719.11
280 1414552760191.02
281 1556008036210.12
282 1711608839831.14
283 1882769723814.25
284 2071046696195.68
285 2278151365815.24
286 2505966502396.77
287 2756563152636.45
288 3032219467900.09
289 3335441414690.10
290 3668985556159.11
291 4035884111775.02
292 4439472522952.52
293 4883419775247.78
294 5371761752772.56
295 5908937928049.81
296 6499831720854.79
297 7149814892940.27
298 7864796382234.30
299 8651276020457.73
300 9516403622503.50
301 10468043984753.90
302 11514848383229.20
303 12666333221552.20
304 13932966543707.40
305 15326263198078.10
306 16858889517885.90
307 18544778469674.50
308 20399256316642.00
309 22439181948306.20
310 24683100143136.80
311 27151410157450.50
312 29866551173195.50
313 32853206290515.10
314 36138526919566.60
315 39752379611523.30
316 43727617572675.60
317 48100379329943.20
318 52910417262937.50
319 58201458989231.30
320 64021604888154.40
321 70423765376969.80
322 77466141914666.80
323 85212756106133.50
324 93734031716746.90
325 103107434888422.00
326 113418178377264.00
327 124759996214990.00
328 137235995836489.00
329 150959595420138.00
330 166055554962152.00
331 182661110458367.00
332 200927221504204.00
333 221019943654624.00
334 243121938020087.00
335 267434131822095.00
336 294177545004305.00
337 323595299504735.00
338 355954829455209.00
339 391550312400730.00
340 430705343640803.00
341 473775878004883.00
342 521153465805371.00
343 573268812385909.00
344 630595693624500.00
345 693655262986950.00
346 763020789285645.00
347 839322868214209.00
348 923255155035630.00
349 1015580670539190.00
350 1117138737593110.00
351 1228852611352420.00
352 1351737872487670.00
353 1486911659736433.00
354 1635602825710080.00
355 1799163108281080.00
356 1979079419109190.00
357 2176987361020110.00
358 2394686097122120.00
359 2634154706834336.00
360 2897570177517770.00
361 3187327195269550.00
362 3506059914796500.00
363 3856665906276153.00
364 4242332496903770.00
365 4666565746594146.00
366 5133222321253561.00
367 5646544553378918.00
368 6211199008716810.00
369 6832318909588492.00
370 7515550800547342.00
371 8267105880602077.00
372 9093816468662290.00
373 ###
374 ###
375 ###
376 ###
Dividend Discount Model

stant growth model

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